Global Brokerage’s SEC filing confirms V3 Markets sold certain intellectual property and fixed assets in August for $0.3 million in cash.
The news around FXCM Group and Global Brokerage Inc (NASDAQ:GLBR), formerly known as FXCM Inc, keep coming in. The latest news comes from the 10-Q report that the company has just filed with the Securities and Exchange Commission (SEC) and concerns the sale of non-core business assets that FXCM has undertaken as it seeks to raise cash to repay the Leucadia loan.
The report says that in August 2017, V3 Markets, LLC (V3), one of the businesses that FXCM has actively marketed for sale, sold certain intellectual property and fixed assets. An unnamed buyer paid $0.3 million in cash. Also, as part of the transaction, the buyer agreed to reimburse V3 for certain liabilities and contract costs incurred by V3 for a prescribed period of time before and after closing amounting to $0.2 million. In conjunction with the sale, V3 ceased its remaining operations.
FXCM remains committed to a plan to sell the remaining institutional business, Lucid Markets Trading Limited, which it continues to actively market. As a result, this business is considered to be held for sale and its results of operations have been reported as discontinued operations.
The principal activity of Lucid Markets Trading Limited is that of a holding company of Lucid Markets LLP, which is a UK-registered electronic market maker and trader in the institutional FX spot and futures markets. Lucid Markets Limited is a member of the FXCM Group of companies.
On August 14, 2017, FXCM completed the sale of its 34.0% equity interest in FastMatch to Euronext US Inc. for a cash purchase price of $59.1 million, of which $46.7 million was paid to the FXCM at closing and $8.7 million is held in escrow until one year from the date of sale, subject to certain future adjustments. In addition, FXCM is entitled to a share of a $10.0 million earn-out if certain performance targets of FastMatch are met.
The broker said it entered into a separate agreement with another equity seller at the time of the closing pursuant to which FXCM paid to the other equity seller its share of the future expected earn-out of $3.7 million. FXCM says it is entitled to approximately $7.1 million for its share and the other equity seller’s share of the $10.0 million earn-out if FastMatch meets the performance targets for the twelve-month period from June 1, 2017 to May 31, 2018. The earn-out is payable to the Company only if the performance targets are fully achieved. The company recorded a $57.0 million gain on the sale of FastMatch.